Report on the condition of the U.S. Banking Industry: Second Quarter, 2005.Assets at reporting bank holding companies rose $234.6 billion in the second quarter, with loan growth accounting for $163.5 billion, or almost 70 percent of the increase in assets over the period. Aggregate assets of reporting bank holding companies reached $10.9 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. , 2.2 percent higher than in the first quarter. Figures for the second quarter do not reflect any possible repercussions repercussions npl → répercussions fpl repercussions npl → Auswirkungen pl of the summer Gulf Coast hurricanes, which occurred after June June: see month. 2005. The strong 3.2 percent increase in loans occurred mostly in mortgage-related categories, both residential and commercial, and in commercial and industrial loans. A sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. portion of the growth in
residential mortgage loans at some institutions was reportedly in
adjustable-rate mortgages Adjustable-rate mortgage (ARM)A mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent to the index value plus a predetermined spread, or (ARMs). A significant portion of the growth in residential mortgages reportedly included conventional ARMs and such nontraditional Adj. 1. nontraditional - not conforming to or in accord with tradition; "nontraditional designs"; "nontraditional practices" untraditional traditional - consisting of or derived from tradition; "traditional history"; "traditional morality" products as "option ARMs" (which allow the borrower BORROWER, contracts. He to whom a thing is lent at his request. 2. The contract of loan confers rights, and imposes duties on the borrower' 1. In general, he has the right to use the thing borrowed, during the time and for the purpose intended between the to select from a range of payment amounts each month) as well as fixed-rate interest-only loans Interest-only loan A loan in which payment of principal is deferred and interest payments are the only current obligation. . To some extent, the recently heightened prominence prominence /prom·i·nence/ (prom´i-nins) a protrusion or projection. frontonasal prominence of these nontraditional types of mortgage loans has been associated with recent and significant increases in home values coupled with efforts by lenders and marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. qualified households to arrange financing for home purchases. Bank holding companies continued to favor these adjustable-rate loans amid market expectations of future increases in interest rates. The growth in commercial real estate lending included substantial increases in construction and land development loans, some of which were used to finance the construction of new homes. Unused commitments to lend rose somewhat more slowly, at 2.6 percent. Securities and money market assets increased $31.0 billion, or 0.8 percent, much less rapidly than loans. At the fifty large bank holding companies, holdings of these assets rose $66.7 billion (2.2 percent), with much of the increase occurring in short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. instruments. Securities and money market assets declined at all other reporting bank holding companies (down $7.5 billion, or 1.6 percent). Most of the decline occurred in mortgage-related securities as these institutions reduced their holdings of fixed-rate securities and used the proceeds of sold and maturing securities to fund loan growth. Declines were also evident at five large bank holding companies for which banking operations represent only a small component of the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: entity (not shown separately), and were accompanied ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. by a comparable decrease in borrowings. (1) A large portion of the growth in total assets at reporting bank holding companies was funded by borrowings rather than deposits, although the pattern of funding growth differed markedly across industry segments. At the fifty large bank holding companies, nondeposit borrowings rose some $128.3 billion, roughly twice as much as deposits ($62.9 billion). In contrast, at all other bank holding companies, which are predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. smaller firms, deposits rose about $29.7 billion, but borrowings rose only $5.2 billion. These smaller firms appeared to be more willing to reduce their securities holdings than to seek significantly more nondeposit funding to accommodate their asset growth. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. at reporting bank holding companies rose 3.3 percent ($29.5 billion), outpacing the rate of growth in total assets. Accordingly, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. leverage capital ratios improved a few basis points. Total risk-based capital ratios Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. declined, however, as the mix of assets shifted slightly toward loans and away from mortgage securities that are assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. low risk weights in bank capital regulations. Notwithstanding these small changes, regulatory capital ratios overall remained strong for the industry. Credit quality continued to improve in the second quarter. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. fell to a remarkably low 0.71 percent of loans and related assets, a reduction of 5 basis points from the first quarter. Net chargeoffs declined to 0.52 percent of average loans, also down 5 basis points. Spurred by these further improvements in asset quality, reporting bank holding companies reduced the size of their allowance for loan losses $493 million, or 0.7 percent. Earnings totaled $32.7 billion for the second quarter, a little lower than in the previous period despite an increase of $1.2 billion in investment securities gains. This small decline was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a 1.3 percent drop in non-interest income--primarily in trading and investment banking revenues--and a 3.6 percent increase in provisions for loan losses to a level that was still slightly below total net chargeoffs. (1.) Three of these five large bank holding companies are insurance-oriented and two are brokerage-oriented. At the end of the second quarter these five firms had combined assets of $748.3 billion, more than half in the securities and money market assets category. Financial information for these five firms is included in the all reporting bank holding company data shown in table 1, but not in the data for the fifty large bank holding companies (table 2) or in the all other reporting bank holding companies (table 3). For further background on the institutions included in each table's data, see the "Report on the Condition of the U.S. Banking Industry: Third Quarter 2003," Federal Reserve Bulletin 90:1, Winter 2004.
1. Financial characteristics of all reporting bank holding companies
in the United States
Millions of dollars except as noted, not seasonally adjusted
Account or ratio (1, 2) 2000 2001
Balance sheet
Total assets 6,745,836 7,486,951
Loans 3,728,569 3,832,553
Securities and money market 2,197,434 2,568,705
Allowance for loan losses -60,376 -68,833
Other 880,209 1,154,528
Total liabilities 6,227,975 6,901,281
Deposits 3,771,749 4,025,769
Borrowings 1,991,564 2,073,770
Other (3) 464,662 801,742
Total equity 517,861 585,670
Off-balauce-sheet
Unused commitments to lend (4) 3,297,511 3,481,745
Securitizations outstanding (5) n.a. 276,717
Derivatives (notional value, billions) (6) 43,608 48,276
Income statement
Net income (7) 73,168 66,510
Net interest income 197,695 224,470
Provisions for loan losses 27,604 40,661
Non-interest income 200,872 218,984
Non-interest expense 258.213 302,140
Security gains or losses -606 4,338
Ratios (percent)
Return on average equity 15.19 11.86
Return on average assets 1.13 .91
Net interest margin (8) 3.58 3.61
Efficiency ratio (7) 63.95 66.92
Nonperforming assets to loans and
related assets 1.09 1.44
Net charge-offs to average loans .64 .89
Loans to deposits 98.86 95.20
Regulatory capital ratios
Tier 1 risk-based 8.84 8.92
Total risk-based 11.80 11.92
Leverage 6.81 6.68
Number of reporting bank holding
companies 1,727 1,842
Account or ratio (1, 2) 2002 2003
Balance sheet
Total assets 7,990,945 8,880,547
Loans 4,080,049 4,435,863
Securities and money market 2,866,857 3,302,240
Allowance for loan losses -74,798 -73,835
Other 1,118,837 1,216,279
Total liabilities 7,350,200 8,177,563
Deposits 4,357,245 4,705,043
Borrowings 2,244,331 2,630,168
Other (3) 748,624 842,352
Total equity 640,745 702,984
Off-balauce-sheet
Unused commitments to lend (4) 3,650,669 4,097,531
Securitizations outstanding (5) 295,001 298,348
Derivatives (notional value, billions) (6) 57,886 72,914
Income statement
Net income (7) 85.731 107,949
Net interest income 246,048 257,537
Provisions for loan losses 45,107 33.075
Non-interest income 221,532 250,639
Non-interest expense 296,964 316,330
Security gains or losses 4,598 5,771
Ratios (percent)
Return on average equity 14.11 16.28
Return on average assets 1.11 1.26
Net interest margin (8) 3.74 3.51
Efficiency ratio (7) 62.38 61.72
Nonperforming assets to loans and
related assets 1.44 1.15
Net charge-offs to average loans 1.04 .84
Loans to deposits 93.64 94.28
Regulatory capital ratios
Tier 1 risk-based 9.22 9.58
Total risk-based 12.28 12.60
Leverage 6.72 6.87
Number of reporting bank holding
companies 1,979 2,134
2003
Account or ratio (1, 2) 2004 Q4
Balance sheet
Total assets 10,339,738 8,880,547
Loans 5,109,786 4,435,863
Securities and money market 3,799,442 3,302,240
Allowance for loan losses -74,623 -73,835
Other 1,505,133 1,216,279
Total liabilities 9,453,154 8,177,563
Deposits 5,249,506 4,705,043
Borrowings 3,088,887 2,630,168
Other (3) 1,114,761 842,352
Total equity 886,584 702,984
Off-balauce-sheet
Unused commitments to lend (4) 4,823,334 4,097,531
Securitizations outstanding (5) 353,978 298,348
Derivatives (notional value, billions) (6) 89,115 72,914
Income statement
Net income (7) 113.475 29,545
Net interest income 281,434 68,072
Provisions for loan losses 28,792 8,944
Non-interest income 272,286 69.991
Non-interest expense 360,288 86,323
Security gains or losses 5,521 655
Ratios (percent)
Return on average equity 14.28 17.25
Return on average assets 1.16 1.34
Net interest margin (8) 3.39 3.59
Efficiency ratio (7) 63.71 62.62
Nonperforming assets to loans and
related assets .82 1.15
Net charge-offs to average loans .67 .98
Loans to deposits 97.34 94.28
Regulatory capital ratios
Tier 1 risk-based 9.37 9.58
Total risk-based 12.24 12.60
Leverage 6.61 6.87
Number of reporting bank holding
companies 2,254 2,134
2004
Account or ratio (1, 2) Q1 Q2
Balance sheet
Total assets 9,358,869 9,712,116
Loans 4,615,601 4,803,610
Securities and money market 3,542,873 3,580,335
Allowance for loan losses -76,629 -76,416
Other 1,277,024 1,404,588
Total liabilities 8,614,689 8,938,434
Deposits 4,847,914 5,005,099
Borrowings 2,902,949 2,955,221
Other (3) 863,826 978,114
Total equity 744,180 773,682
Off-balauce-sheet
Unused commitments to lend (4) 4,350,963 4,420,773
Securitizations outstanding (5) 308,543 314,258
Derivatives (notional value, billions) (6) 79,273 83,109
Income statement
Net income (7) 30,673 25,892
Net interest income 67,441 71,815
Provisions for loan losses 7,165 6,994
Non-interest income 67,370 73,358
Non-interest expense 82,984 101,031
Security gains or losses 1,978 1,011
Ratios (percent)
Return on average equity 17.05 13.52
Return on average assets 1.33 1.07
Net interest margin (8) 3.42 3.49
Efficiency ratio (7) 61.35 67.10
Nonperforming assets to loans and
related assets 1.09 .96
Net charge-offs to average loans .72 .66
Loans to deposits 95.21 95.97
Regulatory capital ratios
Tier 1 risk-based 9.55 9.40
Total risk-based 12.47 12.26
Leverage 6.88 6.67
Number of reporting bank holding
companies 2,193 2,211
2004
Account or ratio (1, 2) Q3 Q4
Balance sheet
Total assets 9,960,475 10,339,738
Loans 4,949,510 5,109,786
Securities and money market 3,628,275 3,803,711
Allowance for loan losses -75,918 -74,623
Other 1,458,618 1,500,864
Total liabilities 9,108,359 9,453,154
Deposits 5,064,773 5,249,506
Borrowings 3,054,677 3,158,450
Other (3) 988,910 1,045,197
Total equity 852,116 886,584
Off-balauce-sheet
Unused commitments to lend (4) 4,569,881 4,823,334
Securitizations outstanding (5) 313,436 353,978
Derivatives (notional value, billions) (6) 84,723 89,115
Income statement
Net income (7) 29.096 28,903
Net interest income 72.426 71,482
Provisions for loan losses 7,489 7,847
Non-interest income 67,314 68,035
Non-interest expense 89,144 90053
Security gains or losses 1,980 480
Ratios (percent)
Return on average equity 14.04 13.40
Return on average assets 1.18 1.12
Net interest margin (8) 3.46 3.28
Efficiency ratio (7) 63.42 64.30
Nonperforming assets to loans and
related assets .89 .82
Net charge-offs to average loans .61 .71
Loans to deposits 97.72 97.34
Regulatory capital ratios
Tier 1 risk-based 9.35 9.37
Total risk-based 12.18 12.24
Leverage 6.73 6.61
Number of reporting bank holding
companies 2,240 2,254
2005
Account or ratio (1, 2) Q1 Q2
Balance sheet
Total assets 10,709,587 10,944,213
Loans 5,184,670 5,348,195
Securities and money market 4,064,142 4,095,179
Allowance for loan losses -73,399 -72,905
Other 1,534,174 1,573,744
Total liabilities 9,819,118 10,024,216
Deposits 5,348,711 5,442,346
Borrowings 3,422,850 3,520,267
Other (3) 1,047,557 1,061,603
Total equity 890,469 919,997
Off-balauce-sheet
Unused commitments to lend (4) 4,909,895 5,039,143
Securitizations outstanding (5) 366,430 367,755
Derivatives (notional value, billions) (6) 92,623 96,656
Income statement
Net income (7) 32,938 32,678
Net interest income 72,990 72,894
Provisions for loan losses 6,578 6,815
Non-interest income 73,227 72,306
Non-interest expense 91,389 91,416
Security gains or losses 371 1,526
Ratios (percent)
Return on average equity 14.87 14.60
Return on average assets 1.24 1.20
Net interest margin (8) 3.18 3.08
Efficiency ratio (7) 60.47 61.34
Nonperforming assets to loans and
related assets .76 .71
Net charge-offs to average loans .57 .52
Loans to deposits 96.93 98.27
Regulatory capital ratios
Tier 1 risk-based 9.31 9.30
Total risk-based 12.18 12.06
Leverage 6.51 6.54
Number of reporting bank holding
companies 2,281 2,295
Footnotes appear on p. 492.
2. Financial characteristics of fifty large bank holding
companies in the United States
Millions of dollars except as noted, not seasonally adjusted
Account ratio (2, 9) 2000 2001
Balance sheet
Total assets 5,509,329 5,883,032
Loans 2,936,756 2,956,272
Securities and money market 1,849,393 2,053,128
Allowance for loan losses -49,224 -56,575
Other 772,404 930,207
Total liabilities 5,098,769 5,434,925
Deposits 2,847,117 3,022,829
Borrowings 1,814,179 1,878,346
Other (3) 437,474 533,750
Total equity 410,560 448,107
Off-balance-sheet
Unused commitments to lend (4) 3,072,864 3,235,807
Securitizations outstanding (5) n.a. 271,825
Derivatives (notional value, billions) (6) 43,544 48,159
Income statement
Net income (7) 60,388 52,530
Net interest income 153,455 166,652
Provisions for loan losses 24,013 35,786
Non-interest income 181,585 174,378
Non-interest expense 216,983 224,502
Security gains or losses -603 4,319
Ratios (percent)
Return on average equity 15.86 12.22
Return on average assets 1.14 0.91
Net interest margin (8) 3.44 3.39
Efficiency ratio (7) 64.09 64.61
Nonperforming assets to loans and
related assets 1.17 1.57
Net charge-offs to average loans .73 1.01
Loans to deposits 103.15 97.80
Regulatory capital ratios
Tier 1 risk-based 8.20 8.22
Total risk-based 11.45 1,157
Leverage 6.43 6.24
Account ratio (2, 9) 2002 2003
Balance sheet
Total assets 6,244,695 6,903,426
Loans 3,140,427 3,387,295
Securities and money market 2,282,894 2,629,416
Allowance for loan losses -61,180 -59,343
Other 882,553 946,058
Total liabilities 5,758,200 6,373,455
Deposits 3,261,241 3,512,801
Borrowings 2,040,891 2,359
Other (3) 456,068 502,010
Total equity 486,496 529,971
Off-balance-sheet
Unused commitments to lend (4) 3,385,143 3,800,219
Securitizations outstanding (5) 289,905 293,046
Derivatives (notional value, billions) (6) 57,768 72,725
Income statement
Net income (7) 68,308 87,644
Net interest income 183,796 192,298
Provisions for loan losses 39,416 28.587
Non-interest income 172,642 195,668
Non-interest expense 215,915 229,336
Security gains or losses 5,039 5.186
Ratios (percent)
Return on average equity 14.71 17.49
Return on average assets 1.13 1.31
Net interest margin (8) 3.56 3.35
Efficiency ratio (7) 59.55 58.70
Nonperforming assets to loans and
related assets 1.56 1.22
Net charge-offs to average loans 1.21 .97
Loans to deposits 96.30 96.43
Regulatory capital ratios
Tier 1 risk-based 8.51 8.80
Total risk-based 11.94 12.18
Leverage 6.25 6.36
Account ratio (2, 9) 2004 2003
2003
2004 Q4
Balance sheet
Total assets 7,940,887 6,903,426
Loans 3,929,885 3,387,295
Securities and money market 2,909,296 2,629,416
Allowance for loan losses -59,484 -59,343
Other 1,161,189 946,058
Total liabilities 7,252,392 6,373,455
Deposits 3,948,310 3,512,801
Borrowings 2,713 2,358,645
Other (3) 590.637 502,010
Total equity 688,495 529,971
Off-balance-sheet
Unused commitments to lend (4) 4,485,138 3,800,219
Securitizations outstanding (5) 348,986 293,046
Derivatives (notional value, billions) (6) 88,675 72,725
Income statement
Net income (7) 90,155 24,422
Net interest income 209,097 51,232
Provisions for loan losses 25,360 7,877
Non-interest income 211,896 55,543
Non-interest expense 263,397 63,226
Security gains or losses 4,626 632
Ratios (percent)
Return on average equity 14.73 18.85
Return on average assets 1.18 1.42
Net interest margin (8) 3.23 3.47
Efficiency ratio (7) 61.00 59.40
Nonperforming assets to loans and
related assets .84 1.22
Net charge-offs to average loans .80 1.13
Loans to deposits 99.53 96.43
Regulatory capital ratios
Tier 1 risk-based 8.57 8.80
Total risk-based 11.84 12.18
Leverage 6.16 6.36
Account ratio (2, 9) 2004
Q1 Q2
Balance sheet
Total assets 7,348,179 7,539,139
Loans 3,548,140 3,683,748
Securities and money market 2,855,674 2,841,338
Allowance for loan losses -61,854 -61,434
Other 1,006,218 1,075,487
Total liabilities 6,781,436 6,949,713
Deposits 3,629,595 3,759,012
Borrowings 2,614,743 2,642,532
Other (3) 537,099 548,170
Total equity 566,743 589,426
Off-balance-sheet
Unused commitments to lend (4) 4,047,520 4,104,527
Securitizations outstanding (5) 304,545 307,878
Derivatives (notional value, billions) (6) 79,044 82,844
Income statement
Net income (7) 25,159 19,494
Net interest income 50,689 52,809
Provisions for loan losses 6,396 6,212
Non-interest income 53,378 56,126
Non-interest expense 60,792 74,478
Security gains or losses 1,608 697
Ratios (percent)
Return on average equity 18.31 13.34
Return on average assets 1.39 1.03
Net interest margin (8) 3.26 3.29
Efficiency ratio (7) 58.30 65.01
Nonperforming assets to loans and
related assets 1.14 1.00
Net charge-offs to average loans .88 .78
Loans to deposits 97.76 98.00
Regulatory capital ratios
Tier 1 risk-based 8.77 8.63
Total risk-based 12.05 11.88
Leverage 6.36 6.14
Account ratio (2, 9) 2004
Q3 Q4
Balance sheet
Total assets 7,741,040 7,940,887
Loans 3,791,894 3,929,885
Securities and money market 2,880,574 2,909,296
Allowance for loan losses -60,811 -59,484
Other 1,129,382 1,161,189
Total liabilities 7,084,305 7,252,392
Deposits 3,793,285 3,948,310
Borrowings 2,742,512 2,713,445
Other (3) 548,509 590.637
Total equity 656,735 688,495
Off-balance-sheet
Unused commitments to lend (4) 4,236,822 4,485,138
Securitizations outstanding (5) 307,325 348,986
Derivatives (notional value, billions) (6) 84,463 88,675
Income statement
Net income (7) 22,998 23,595
Net interest income 54,067 53.262
Provisions for loan losses 6,704 6,752
Non-interest income 51,540 54,644
Non-interest expense 64,415 66,635
Security gains or losses 1,723 524
Ratios (percent)
Return on average equity 14.33 14.05
Return on average assets 1.19 1.19
Net interest margin (8) 3.31 3.16
Efficiency ratio (7) 60.38 61.61
Nonperforming assets to loans and
related assets .91 .84
Net charge-offs to average loans .72 .83
Loans to deposits 99.96 99.53
Regulatory capital ratios
Tier 1 risk-based 8.60 8.57
Total risk-based 11.82 11.84
Leverage 6.22 6.16
Account ratio (2, 9) 2005
Q1 Q2
Balance sheet
Total assets 8,206,462 8,417,847
Loans 3,979,933 4,097,920
Securities and money market 3,094,734 3,161,422
Allowance for loan losses -58.123 -57,422
Other 1,189,918 1,215,926
Total liabilities 7,513,951 7,706,688
Deposits 4,019,042 4,081,979
Borrowings 2,896,853 3,025,103
Other (3) 598.057 599,607
Total equity 692,511 711,159
Off-balance-sheet
Unused commitments to lend (4) 4,557,059 4,672,311
Securitizations outstanding (5) 361,524 362,973
Derivatives (notional value, billions) (6) 92.140 96,307
Income statement
Net income (7) 26,402 24,977
Net interest income 53,632 53,316
Provisions for loan losses 5,770 6,037
Non-interest income 57,507 54,869
Non-interest expense 66,232 65,574
Security gains or losses 174 1,470
Ratios (percent)
Return on average equity 15.30 14.35
Return on average assets 1.29 1.19
Net interest margin (8) 3.04 2.92
Efficiency ratio (7) 57.16 58.57
Nonperforming assets to loans and
related assets .78 .72
Net charge-offs to average loans .70 .63
Loans to deposits 99.03 100.39
Regulatory capital ratios
Tier 1 risk-based 8.52 8.45
Total risk-based 11.79 11.59
Leverage 6.09 6.06
Footnotes appear on p. 492.
3. Financial characteristics of all other reporting bank holding
companies in the United States
Millions of dollars except as noted, not seasonally adjusted
Account (1, 10) 2000 2001
Balance sheet
Total assets 1,178,273 1,290,686
Loans 767,464 822,127
Securities and money market 319,514 359,293
Allowance for loan losses -10,884 -11,894
Other 102,179 121,160
Total liabilities 1,076,381 1,174,315
Deposits 912,804 988,825
Borrowings 142,782 159,804
Other (3) 20,794 25,687
Total equity 101,892 116,371
Off-balance-sheet
Unused commitments to lend (4) 215,583 235,764
Securitizations outstanding (5) n.a. 4,567
Derivatives (notional value, billions) (6) 47 87
Income statement
Net income (7) 12,485 13,841
Net interest income 43,509 46,215
Provisions for loan losses 3,420 4,438
Non-interest income 16,181 22,434
Non-interest expense 38,118 44,389
Security gains or losses -9 729
Ratios (percent)
Return on average equity 13.09 12.53
Return on average assets 1.12 1.13
Net interest margin (8) 4.31 4.20
Efficiency ratio (7) 62.24 63.80
Nonperforming assets to loans and
related assets .77 .97
Net charge-offs to average loans .32 .43
Loans to deposits 84.08 83.14
Regulatory capital ratios
Tier l risk-based 11.83 12.27
Total risk-based 13.29 13.83
Leverage 8.52 8.81
Number of other reporting bank holding
companies 1,652 1,779
Account (1, 10) 2002 2003
Balance sheet
Total assets 1,414,391 1,549,979
Loans 885,466 969,249
Securities and money market 408,750 449,241
Allowance for loan losses -13,181 -14,075
Other 133,355 145,565
Total liabilities 1,283,635 1,407,777
Deposits 1,078,022 1,169,677
Borrowings 174,398 203,755
Other (3) 31,214 34,345
Total equity 130,756 142,202
Off-balance-sheet
Unused commitments to lend (4) 253,620 284,399
Securitizations outstanding (5) 4,358 4,159
Derivatives (notional value, billions) (6) 86 92
Income statement
Net income (7) 16,634 17,904
Net interest income 51,029 53,139
Provisions for loan losses 5,059 4,271
Non-interest income 24,591 27,754
Non-interest expense 46,957 51,486
Security gains or losses 639 993
Ratios (percent)
Return on average equity 13.53 13.10
Return on average assets 1.25 1.21
Net interest margin (8) 4.26 4.00
Efficiency ratio (7) 61.12 62.94
Nonperforming assets to loans and
related assets 1.02 .98
Net charge-offs to average loans .46 .39
Loans to deposits 82.14 82.86
Regulatory capital ratios
Tier l risk-based 12.50 12.59
Total risk-based 14.11 14.30
Leverage 8.93 9.06
Number of other reporting bank holding
companies 1,916 2,071
2003
Account (1, 10) 2004 Q4
Balance sheet
Total assets 1,709,090 1,549,979
Loans 1,097,600 969,249
Securities and money market 474,035 449,241
Allowance for loan losses -14,740 -14,075
Other 152,194 145,565
Total liabilities 1,550,889 1,407,777
Deposits 1,281,284 1,169,677
Borrowings 228,930 203,755
Other (3) 40,675 34,345
Total equity 158,201 142,202
Off-balance-sheet
Unused commitments to lend (4) 324,825 284,399
Securitizations outstanding (5) 2,877 4,159
Derivatives (notional value, billions) (6) 140 92
Income statement
Net income (7) 19,654 4,220
Net interest income 57,386 13,639
Provisions for loan losses 3,200 1,127
Non-interest income 26,650 6,754
Non-interest expense 53,586 13,440
Security gains or losses 558 187
Ratios (percent)
Return on average equity 13.23 12.06
Return on average assets 1.21 1.10
Net interest margin (8) 3.93 3.97
Efficiency ratio (7) 62.68 65.72
Nonperforming assets to loans and
related assets .76 .98
Net charge-offs to average loans .25 .51
Loans to deposits 85.66 82.86
Regulatory capital ratios
Tier l risk-based 12.45 12.59
Total risk-based 14.09 14.30
Leverage 9.16 9.06
Number of other reporting bank holding
companies 2,199 2,071
2004
Account (1, 10)
Q1 Q2
Balance sheet
Total assets 1,590,705 1,636,305
Loans 996,874 1,034,676
Securities and money market 465,449 463,381
Allowance for loan losses -14,383 -14,628
Other 142,766 152,875
Total liabilities 1,444,384 1,490,587
Deposits 1,202,669 1,228,499
Borrowings 201,409 223,675
Other (3) 40,306 38,413
Total equity 146,321 145,718
Off-balance-sheet
Unused commitments to lend (4) 290,060 301,229
Securitizations outstanding (5) 2,875 3,000
Derivatives (notional value, billions) (6) 118 109
Income statement
Net income (7) 4,826 4,846
Net interest income 13,867 14,014
Provisions for loan losses 802 786
Non-interest income 6,768 6,707
Non-interest expense 13,159 13,145
Security gains or losses 310 111
Ratios (percent)
Return on average equity 13.52 13.28
Return on average assets 1.24 1.21
Net interest margin (8) 3.97 3.89
Efficiency ratio (7) 63.02 62.81
Nonperforming assets to loans and
related assets .96 .87
Net charge-offs to average loans .23 .25
Loans to deposits 82.89 84.22
Regulatory capital ratios
Tier l risk-based 12.62 12.48
Total risk-based 14.31 14.15
Leverage 9.12 9.10
Number of other reporting bank holding
companies 2,131 2,149
2004
Account (1, 10)
Q3 Q4
Balance sheet
Total assets 1,674,215 1,709,090
Loans 1,069,967 1,097,600
Securities and money market 465,577 474,035
Allowance for loan losses -14,800 -14,740
Other 153,471 152,194
Total liabilities 1,519,327 1,550,889
Deposits 1,253,522 1,281,284
Borrowings 224,912 228,930
Other (3) 40,893 40,675
Total equity 154,888 158,201
Off-balance-sheet
Unused commitments to lend (4) 315,742 324,825
Securitizations outstanding (5) 2,757 2,877
Derivatives (notional value, billions) (6) 117 140
Income statement
Net income (7) 5,042 4,941
Net interest income 14,539 14,965
Provisions for loan losses 798 813
Non-interest income 6,615 6,560
Non-interest expense 13,319 13,962
Security gains or losses 133 5
Ratios (percent)
Return on average equity 13.45 12.69
Return on average assets 1.22 1.17
Net interest margin (8) 3.92 3.95
Efficiency ratio (7) 62.91 63.88
Nonperforming assets to loans and
related assets .84 .76
Net charge-offs to average loans .23 .31
Loans to deposits 85.36 85.66
Regulatory capital ratios
Tier l risk-based 12.46 12.45
Total risk-based 14.11 14.09
Leverage 9.15 9.16
Number of other reporting bank holding
companies 2,182 2,199
2005
Account (1, 10)
Q1 Q2
Balance sheet
Total assets 1,738,128 1,778,206
Loans 1,123,765 1,161,103
Securities and money market 471,150 463,669
Allowance for loan losses -14,851 -15,030
Other 158,065 165,463
Total liabilities 1,580,087 1,614,877
Deposits 1,310,496 1,340,212
Borrowings 227,218 232,457
Other (3) 42,373 42,208
Total equity 158,041 163,328
Off-balance-sheet
Unused commitments to lend (4) 338,581 351,250
Securitizations outstanding (5) 2,792 2,667
Derivatives (notional value, billions) (6) 95 95
Income statement
Net income (7) 5,260 5,389
Net interest income 15,268 15,576
Provisions for loan losses 678 724
Non-interest income 6,708 6,664
Non-interest expense 13,998 13,947
Security gains or losses 105 64
Ratios (percent)
Return on average equity 13.31 13.45
Return on average assets 1.23 1.23
Net interest margin (8) 3.97 3.97
Efficiency ratio (7) 62.57 61.97
Nonperforming assets to loans and
related assets .74 .70
Net charge-offs to average loans .17 .18
Loans to deposits 85.75 86.86
Regulatory capital ratios
Tier l risk-based 12.33 12.15
Total risk-based 13.95 13.75
Leverage 9.14 9.13
Number of other reporting bank holding
companies 2,227 2,240
Footnotes appear on p. 492.
4. Nonfinancial characteristics of all reporting bank holding
companies in the United States
Millions of dollars except as noted, not seasonally adjusted
Account 2000 2001
Bank holding companies that qualify as
financial holding companies (11, 12)
Domestic
Number 300 389
Total assets 4,497,781 5,440,842
Foreign-owned (13)
Number 9 10
Total assets 502,506 621,442
Total U.S. commercial bank
assets (14) 6,130,086 6,416,080
By ownership
Reporting bank holding companies 5,657,210 5,942,670
Other bank holding companies 229,274 230,467
Independent banks 243,603 242,944
Assets associated with nonbanking
activities (12, 15)
Insurance n.a. 426,462
Securities broker-dealers n.a. n.a.
Thrift institutions 102,218 91,170
Foreign nonbank institutions 132,629 138,977
Other nonbank institutions 1,234,714 1,674,267
Number of bank holding companies
engaged in nonbanking activities (12, 15)
Insurance n.a. 143
Securities broker-dealers n.a. n.a.
Thrift institutions 50 38
Foreign nonbank institutions 25 32
Other nonbank institutions 633 743
Foreign-owned bank holding
companies (13)
Number 21 23
Total assets 636,669 764,411
Employees of reporting bank holding
companies (full-time equivalent) 1,859,930 1,985,981
Assets of fifty large bank holding
companies (9, 17)
Fixed panel (from table 2) 5,509,329 5,883,032
Fifty large as of reporting date 5,319,129 5,732,621
Percent of all reporting
bank holding companies 78.90 76.60
Account 2002 2003
Bank holding companies that qualify as
financial holding companies (11, 12)
Domestic
Number 435 452
Total assets 5,921,277 6,610,314
Foreign-owned (13)
Number 11 12
Total assets 616,254 710,441
Total U.S. commercial bank
assets (14) 6,897,142 7,397,839
By ownership
Reporting bank holding companies 6,429,158 6,941
Other bank holding companies 227,016 219,223
Independent banks 240,968 237,575
Assets associated with nonbanking
activities (12, 15)
Insurance 372,405 437,503
Securities broker-dealers 630,851 656,775
Thrift institutions 107,422 133,056
Foreign nonbank institutions 145,344 170.630
Other nonbank institutions 561,712 678.088
Number of bank holding companies
engaged in nonbanking activities (12, 15)
Insurance 96 102
Securities broker-dealers 47 50
Thrift institutions 32 27
Foreign nonbank institutions 37 42
Other nonbank institutions 880 1,042
Foreign-owned bank holding
companies (13)
Number 26 27
Total assets 762,901 934,085
Employees of reporting bank holding
companies (full-time equivalent) 1,992,559 2,034,358
Assets of fifty large bank holding
companies (9, 17)
Fixed panel (from table 2) 6,244,695 6,903,426
Fifty large as of reporting date 6,032,000 6,666,488
Percent of all reporting
bank holding companies 75.50 75.10
2003
Account 2004
Q4
Bank holding companies that qualify as
financial holding companies (11, 12)
Domestic
Number 474 452
Total assets 7,462,507 6,610,314
Foreign-owned (13)
Number 14 12
Total assets 1,376,333 710,441
Total U.S. commercial bank
assets (14) 8,207,673 7,397,839
By ownership
Reporting bank holding companies 7,785,991 6,941,042
Other bank holding companies 209,177 219,223
Independent banks 212,505 237,575
Assets associated with nonbanking
activities (12, 15)
Insurance 579,111 437,503
Securities broker-dealers 719,242 656,775
Thrift institutions 191,201 133,056
Foreign nonbank institutions 216,758 170,630
Other nonbank institutions 1,128,179 678,088
Number of bank holding companies
engaged in nonbanking activities (12, 15)
Insurance 97 102
Securities broker-dealers 44 50
Thrift institutions 27 27
Foreign nonbank institutions 39 42
Other nonbank institutions 1,026 1,042
Foreign-owned bank holding
companies (13)
Number 29 27
Total assets 1,537,208 934,085
Employees of reporting bank holding
companies (full-time equivalent) 2,162,179 2,034,358
Assets of fifty large bank holding
companies (9, 17)
Fixed panel (from table 2) 7,940,887 6,903,426
Fifty large as of reporting date 7,940,955 6,666,488
Percent of all reporting
bank holding companies 76.80 75.10
2004
Account
Q1 Q2
Bank holding companies that qualify as
financial holding companies (11, 12)
Domestic
Number 465 471
Total assets 6,856,173 7,082,367
Foreign-owned (13)
Number 13 14
Total assets 994,672 1,117,266
Total U.S. commercial bank
assets (14) 7,614,478 7,850,587
By ownership
Reporting bank holding companies 7,173,463 7,409,187
Other bank holding companies 205,391 211,725
Independent banks 235,623 229,675
Assets associated with nonbanking
activities (12, 15)
Insurance 468,168 583,073
Securities broker-dealers 713,794 710,485
Thrift institutions 139,713 156,033
Foreign nonbank institutions 184,366 226,094
Other nonbank institutions 844,638 862,230
Number of bank holding companies
engaged in nonbanking activities (12, 15)
Insurance 100 101
Securities broker-dealers 49 48
Thrift institutions 29 27
Foreign nonbank institutions 42 41
Other nonbank institutions 1,010 1,030
Foreign-owned bank holding
companies (13)
Number 27 28
Total assets 1,145,476 1,271,378
Employees of reporting bank holding
companies (full-time equivalent) 2,099,126 2,085,733
Assets of fifty large bank holding
companies (9, 17)
Fixed panel (from table 2) 7,348,179 7,539,139
Fifty large as of reporting date 7,045,844 7,385,384
Percent of all reporting
bank holding companies 75.30 76.00
2004
Account
Q3 Q4
Bank holding companies that qualify as
financial holding companies (11, 12)
Domestic
Number 477 474
Total assets 7,279,238 7,462,507
Foreign-owned (13)
Number 14 14
Total assets 1,193,984 1,376,333
Total U.S. commercial bank
assets (14) 8,041,198 8,207,673
By ownership
Reporting bank holding companies 7,599,697 7,785,991
Other bank holding companies 208,696 209,177
Independent banks 232,805 212,505
Assets associated with nonbanking
activities (12, 15)
Insurance 579,785 579,111
Securities broker-dealers 756,869 892,571
Thrift institutions 162,396 191,201
Foreign nonbank institutions 230,569 216,758
Other nonbank institutions 887,848 1,128,179
Number of bank holding companies
engaged in nonbanking activities (12, 15)
Insurance 98 97
Securities broker-dealers 45 44
Thrift institutions 25 27
Foreign nonbank institutions 40 39
Other nonbank institutions 1,050 1,026
Foreign-owned bank holding
companies (13)
Number 28 29
Total assets 1,349,900 1,537,208
Employees of reporting bank holding
companies (full-time equivalent) 2,133,299 2,162,179
Assets of fifty large bank holding
companies (9, 17)
Fixed panel (from table 2) 7,741,040 7,940,887
Fifty large as of reporting date 7,644,504 7,940,955
Percent of all reporting
bank holding companies 76.70 76.80
2005
Account
Q1 Q2
Bank holding companies that qualify as
financial holding companies (11, 12)
Domestic
Number 472 469
Total assets 7,650,556 7,893,437
Foreign-owned (13)
Number 15 15
Total assets 1,526,168 1,516,573
Total U.S. commercial bank
assets (14) 8,403,885 8,534,505
By ownership
Reporting bank holding companies 2,991,901 8,119,047
Other bank holding companies 204,795 206,259
Independent banks 207,189 209,200
Assets associated with nonbanking
activities (12, 15)
Insurance 574,466 582.023
Securities broker-dealers 1,168,482 1,165,603
Thrift institutions 194,267 198,290
Foreign nonbank institutions 219,828 231,564
Other nonbank institutions 1,045,116 836,733
Number of bank holding companies
engaged in nonbanking activities (12, 15)
Insurance 97 99
Securities broker-dealers 43 45
Thrift institutions 27 26
Foreign nonbank institutions 38 37
Other nonbank institutions 926 886
Foreign-owned bank holding
companies (13)
Number 29 30
Total assets 1,690,119 1,698,361
Employees of reporting bank holding
companies (full-time equivalent) 2,168,024 2,196,793
Assets of fifty large bank holding
companies (9, 17)
Fixed panel (from table 2) 8,206,462 8,417,847
Fifty large as of reporting date 8,206,462 8,417,847
Percent of all reporting
bank holding companies 76.60 76.9
NOTE: All data are as of the most recent period shown. The historical
figures may not match those in earlier versions of this table because
of mergers, significant acquisitions or divestitures, or revisions or
restatements to bank holding company financial reports. Data for the
most recent period may not include all late-filing institutions.
(1.) Covers top-tier bank holding companies except (1) those with
consolidated assets of less than $150 million and with only one
subsidiary bank and (2) multibank holding companies with consolidated
assets of less than $150 million, with no debt outstanding to the
general public and not engaged in certain nonbanking activities.
(2.) Data for all reporting bank holding companies and the fifty large
bank holding companies reflect merger adjustments to the fifty large
bank holding companies. Merger adjustments account for mergers,
acquisitions, other business combinations and large divestitures
that occurred during the time period covered in the tables so that the
historical information on each of the fifty underlying institutions
depicts, to the greatest extent possible, the institutions as they
exist in the most recent period. In general, adjustments for mergers
among bank holding companies reflect the combination of historical data
from predecessor bank holding companies.
The data for the fifty large bank holding companies have also been
adjusted as necessary to match the historical figures in each company's
most recently available financial statement.
In general, the data are not adjusted for changes in generally accepted
accounting principles.
(3.) Includes minority interests in consolidated subsidiaries.
(4.) Includes credit card lines of credit as well as commercial lines
of credit.
(5.) Includes loans sold to securitization vehicles in which bank
holding companies retain some interest, whether through recourse or
seller-provided credit enhancements or by servicing the underlying
assets. Securitization data were first collected on the FR Y-9C report
for June 2001.
(6.) The notional value of a derivative is the reference amount of an
asset on which an interest rate or price differential is calculated.
The total notional value of a bank holding company's derivatives
holdings is the sum of the notional values of each derivative contract
regardless of whether the bank holding company is a payer or recipient
of payments under the contract. The actual cash flows and fair market
values associated with these derivative contracts are generally only a
small fraction of the contract's notional value.
(7.) Income statement subtotals for all reporting bank holding
companies and the fifty large bank holding companies exclude
extraordinary items, the cumulative effects of changes in accounting
principles, and discontinued operations at the fifty large institutions
and therefore will not sum to Net income. The efficiency ratio is
calculated excluding nonrecurring income and expenses.
(8.) Calculated on a fully-taxable-equivalent basis.
(9.) In general, the fifty large bank holding companies are the fifty
largest bank holding companies as measured by total consolidated assets
for the latest period shown. Excludes a few large bank holding
companies whose commercial banking operations account for only a
small portion of assets and earnings.
(10.) Excludes predecessor bank holding companies that were
subsequently merged into other bank holding companies in the panel of
fifty large bank holding companies. Also excludes those bank holding
companies excluded from the panel of fifty large bank holding companies
because commercial banking operations represent only a small part of
their consolidated operations.
(11.) Exclude qualifying institutions that are not reporting bank
holding companies.
(12.) No data related to financial holding companies and only some data
on nonbanking activities were collected on the FR Y-9C report before
implementation of the Gramm-Leach-Bliley Act in 2000.
(13.) A bank holding company is considered "foreign-owned" if it is
majority-owned by a foreign entity. Data for foreign-owned companies do
not include data for branches and agencies of foreign banks operating
in the United States.
(14.) Total assets of insured commercial banks in the United States as
reported in the commercial bank Call Report (FFIEC 031 or 041, Reports
of Condition and Income). Excludes data for a small number of
commercial banks owned by other commercial banks that file separate
call reports yet are also covered by the reports filed by their parent
banks. Also excludes data for mutual savings banks.
(15.) Data for thrift, foreign nonbank, and other nonbank institutions
are total assets of each type of subsidiary as reported in the FR Y-9LP
report. Data cover those subsidiaries in which the top-tier bank
holding company directly or indirectly owns or controls more than 50
percent of the outstanding voting stock and that has been consolidated
using generally accepted accounting principles. Data for securities
broker-dealers are net assets (that is, total assets, excluding
intercompany transactions) of broker-dealer subsidiaries engaged in
activities pursuant to the Gramm-Leach-Bliley Act, as reported on
schedule HC-M of the FR Y-9C report. Data for insurance activities are
all insurance-related assets held by the bank holding company as
reported on schedule HC-I of the FR Y-9C report.
Beginning in 2002:Q1, insurance totals exclude intercompany
transactions and subsidiaries engaged in credit-related insurance or
those engaged principally in insurance agency activities. Beginning
in 2002:Q2, insurance totals include only newly authorized insurance
activities under the Gramm-Leach-Bliley Act.
(16.) Aggregate assets of thrift subsidiaries were affected
significantly by the conversion of Charter One's thrift subsidiary
(with assets of $37 billion) to a commercial bank in the second
quarter of 2002 and the acquisition by Citigroup of Golden State
Bancorp (a thrift institution with assets of $55 billion) in the
fourth quarter of 2002.
(17.) Changes over time in the total assets of the time-varying panel
of fifty large bank holding companies are attributable to (1) changes
in the companies that make up the panel and (2) to a small extent,
restatements of financial reports between periods.
n.a. Not available
SOURCE: Federal Reserve Reports FRY-9C and FR Y-9LP, Federal Reserve
National Information Center, and published financial reports.
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